This week, the Oman Chamber of Commerce and Industry organized an important seminar on decentralization and its role in the economy and labor market, featuring experts from Germany. The seminar aimed to emphasize the significance of implementing decentralized practices to support balanced development and enhance economic competitiveness in line with the Oman Vision 2040.
Decentralization is not merely an administrative structure; it is a fundamental pillar for stimulating innovation and supporting entrepreneurship. By transferring powers to local authorities, entities closer to the reality can make decisions that meet the needs of the local community. This, in turn, fosters a flexible environment that enhances innovation and contributes to balanced national economic development.
In terms of supporting economic diversification, decentralization is a key tool for achieving the goals of Oman Vision 2040, which seeks to increase the contribution of non-oil sectors to the GDP. By distributing powers and resources, each governorate can focus on developing its economic sectors according to its relative advantages. For instance, Dhofar Governorate can boost entrepreneurship in eco-tourism, leveraging its scenic nature and seasonal attractions to attract tourists, leading to projects such as eco-lodges and cultural events.
Studies indicate that decentralization can stimulate creativity by up to 25% in areas with local authority compared to centralized regions, opening avenues for youth and entrepreneurs across the Sultanate to establish projects that serve their communities and meet local market needs. A startup in Muscat, such as 'O Taxi', exemplifies how local initiatives can flourish rapidly when administrative and legislative decisions are supportive and directed.
The Oman Vision 2040 prioritizes balanced development across all regions of the Sultanate. Through decentralization, this balance can be achieved by equitably distributing resources and services, contributing to development in remote areas. For example, the 'Economic City in Duqm' project illustrates how remote areas can transform into investment and entrepreneurial hubs through administrative and organizational empowerment, attracting investments in sectors like industry, energy, and logistics.
The German experience in decentralization serves as an inspiring model for Oman. Decentralization policies in Germany have led to a 15% increase in entrepreneurial projects over the last decade, with opportunities distributed fairly between urban and rural areas. For instance, Bavaria is known for its support for entrepreneurs through local funding programs and innovation support centers, making it a model for enhancing regional economies through local policies.
By applying similar policies in Oman, partnerships between the public and private sectors at the governorate level can be strengthened to develop sustainable infrastructure, such as establishing business incubators and dedicated free economic zones for each governorate, enhancing entrepreneurs' ability to innovate and compete.
With the successful models seen locally and internationally, Oman has the potential to become a global entrepreneurial hub that reflects its national aspirations and ranks among leading countries. Strengthening the implementation of decentralization in Oman will directly contribute to achieving the strategic objectives of Oman Vision 2040 by empowering governorates, encouraging innovation, and providing equal opportunities for economic growth and prosperity.